A multi-hyphenate talent, Susie Plascencia’s skills as an entrepreneur-storyteller-advocate make her well-equipped in her role as Brand Partner for Humo, California’s Mexican American-owned cannabis brand, which describes itself as “raza owned,” stemming from the phrase la raza (meaning “the people”) and its roots in post-revolution Mexican history. “Being a woman in the cannabis industry means overcoming numerous stereotypes on a daily basis and doing so with grace and tenacity,” she says. Additionally, Plascencia is co-founder of MOTA Glass, a Los… Read more.
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Trips to the Bahamas. Rolex watches. Expensive cars. Exclusive concert tickets. Or literally just bags of cash. Those are all ways used by independent marijuana brands in Arizona to buy their way onto dispensary shelves, according to several industry insiders, responding to the news that multistate operator Trulieve Cannabis Corp. – which runs 21 dispensaries in the state – filed a lawsuit against former employees alleging a “commercial bribery” scheme. “Those are all the same concepts. It’s all just paying for shelf… Read more.
Wholesale cannabis prices stabilized or rebounded in some key markets through the summer, but cultivators should brace for renewed downward pressure as the fall harvest boosts inventories through the end of the year, experts say. Chalk it up to simple supply-and-demand dynamics. “Over the course of this month, you start to see a huge buildup of inventory across the industry,” Ben Burstein, strategist at New York-based wholesale cannabis platform LeafLink, told MJBizDaily in an interview. “You start to get huge surpluses of… Read more.
After the market closed on Friday, SNDL Inc. (NASDAQ: SNDL) told investors that it finally took steps regarding its SunStream joint venture and its underperforming Parallel cannabis assets. The company’s joint venture Sunstream Bancorp launched SunStream USA with the expectation that Parallel will be restructured. In March 2021, Sundial Growers Inc., now known as SNDL, formed SunStream Bancorp, a 50/50 joint venture with SAF Opportunities LP, a member of the SAF Group. SunStream Bancorp is the owner of $145 million of junior notes owned by Parallel that… Read more.
A widespread recall targeting tens of thousands of infused cannabis products in Missouri has led to millions of dollars in lost sales and inventory for retailers and manufacturers, according to industry sources and court documents obtained by MJBizDaily. At the same time, scores of operators caught up in the fallout have few options to recoup those losses. Some retailers, such as Kansas City-based multistate operator Greenlight, have locked up thousands of vape pens and other products in vaults after Missouri regulators… Read more.
A crackdown by authorities in Kay County, Oklahoma led to the confiscation of 4,800 pounds of cannabis and five businesses shut down, KOCO reports. The operation was led by the Oklahoma Medical Marijuana Authority (OMMA) and was prompted by both routine inspections of licensed medical cannabis businesses and civilian complaints. Mel Woodrow, chief of enforcement and compliance at OMMA, told KOCO that the action was the first time the agency had conducted such an operation. The crackdown comes as Oklahoma officials try to reign… Read more.
London, England-based psychedelics startup incubator Beckley Waves has raised $3.3 million in seed funding, Axios reports. The firm backs startups focused on therapies, education, and software. Investors in the raise include the Joe and Sandy Samberg Foundation, Satori Neuro, Evolve Ventures and Foundation, Bridge Builders Collaborative, 1440 Foundation, Austin Hearst, and Asia Agnelli. Daniel Love, a partner at Beckley, told Axios the company plans to use the funds to launch two companies and “make a handful of strategic investments.” Love added that… Read more.
E-commerce technology company Squarespace Inc. (NYSE: SQSP) announced a partnership with dispensary tech company Jane Technologies to offer its products to cannabis businesses in Canada. “At Square, we’re always looking to solve sellers’ pain points and we know cannabis dispensaries have limited options when it comes to reliable and integrated commerce tools,” said Roshan Jhunja, Head of Retail at Square. “Sellers are looking for an easy-to-use, fully integrated omnichannel solution to help them run their businesses in person and online. We’ve been fortunate to… Read more.
One of Angela Pih’s favorite aspects of the cannabis industry is its velocity. What she’s referring to is the “incredibly exciting” speed of bringing new products to market within months. With extensive experience across retail, consumer packaged goods and cannabis, Pih is head of marketing for StateHouse Holdings, a vertically integrated California-based cannabis enterprise. From the moment she engages you in conversation, it’s quite evident the woman knows what she’s talking about. One industry trajectory Pih isn’t a fan of is the… Read more.
Canadian cannabis producer Canopy Growth Corp. entered into subscription agreements with institutional investors in a private placement offering for gross proceeds of approximately $25 million (33.8 million Canadian dollars). The offering of roughly 22.9 million units occurred at a price per unit of $1.09, an approximately 22% discount from Friday’s close, according to a Monday news release. Smiths Falls, Ontario-based Canopy said the investors hold an over-allotment option allowing them to acquire up to about 22.9 more units. The gross proceeds from… Read more.
Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) is changing its legal name to The Cannabist Company Holdings Inc. as it aligns more closely with its retail store name. The company is rebranding to The Cannabist Company and is also changing its trading symbols on the CBOE Canada to “CBST” and “CBST.WT”, respectively, for the common shares and warrants. “The rebrand to The Cannabist Company marks an incredibly pivotal moment for us as an organization and speaks to where we are heading. When we launched Cannabist, we wanted… Read more.
Purchases of adult-use cannabis in Montana hit a monthly record in August, according to newly released sales numbers from the state’s Cannabis Control Division. Medical marijuana receipts for the month, meanwhile, were at their lowest since adult-use stores opened in January 2022. Adult-use marijuana sales tallied $23,728,009 in August, the Department of Revenue report shows. Medical cannabis added $4,969,303, for a monthly total of nearly $28.7 million—the highest monthly haul ever recorded for the state’s marijuana industry. All told, state-licensed… Read more.
Unlike the myriad of challenges operators in New York face, new applicants in Maryland are stepping into a distinctively encouraging environment as the state gears up to expand its already-successful adult-use market. The state is set to open its first application round for adult-use marijuana licenses on Nov. 13, which is earmarked exclusively for social equity businesses. The upcoming 30-day application window will usher in opportunities for 179 new marijuana licensees, including: 75 dispensaries 16 growers 32 processors The new licenses will… Read more.
With cannabis stock prices stalling and sliding over the past few years, companies increasingly have turned to debt financing as a means of raising funds. Last year, debt made up more than 90 percent of capital raised by American cultivation and retail companies and 55.7 percent of capital raised in the United States industry overall, according to data collected by strategic advisory firm Viridian Capital Advisors. In October 2022, multistate operator (MSO) TerrAscend Corp. secured a $45.5-million loan from real estate… Read more.
The Maine regulatory body overseeing the adult-use cannabis market is introducing new regulations to improve consumer accessibility. These modifications, driven by recent record-breaking sales, are primarily influenced by two legislative bills passed this year. One of these bills seeks to diminish the stigma surrounding cannabis. At the same time, the other aims to rectify an omission in a previous year's bill, which permitted cannabis sales at events like concerts and festivals. Maine, the way life should be, is the state slogan,… Read more.
With its right hand, Tilray Brands has consolidated a swath of the Canadian cannabis market, most recently buying Hexo Corp. in its quest to grow market share. With its left hand, Tilray has gone on a beverage alcohol acquisition bender in the United States. After several alcohol acquisitions that turned Tilray into one of the largest U.S. craft brewers, the company recently announced an $85 million deal to acquire eight craft beer brands from brewing behemoth Anheuser-Busch InBev. As the dust settles on Tilray’s latest… Read more.
High Times has been sold to Victoria, BC-based psychedelics firm Lucy Scientific Discovery (for LSD) headed by disgraced Hollywood executive Richard Nanula. The news leaked out yesterday with a press release sent to a handful of media sources: Lucy Scientific Discovery Inc. (“Lucy” or “the Company”) (NASDAQ: LSDI), a leading psychotropic innovator announces the acquisition of the intellectual property (IP) of High Times, the most recognizable and iconic brand in the cannabis industry. This acquisition provides a stream of high-margin licensing and… Read more.
Marijuana sales along state lines are key revenue generators for retail operators in the United States, and new insights suggest a similar business bump along international borders, particularly Mexico. Data compiled by New York-based wholesale technology platform LeafLink – as well as information gathered from state agencies, quarterly reports and interviews with several cannabis companies – bear that out. LeafLink analyzed hundreds of ZIP codes at the request of MJBizDaily and found strong links that when new recreational markets open, retailers near… Read more.
An anti-marijuana advocacy group is taking aim at a banking arrangement between Wells Fargo and the state of Maryland that allows officials to receive and process tax revenue generated by state-legal cannabis businesses, calling the scheme “an active effort to protect the banks who are breaking federal law” and making an attempt to alert federal officials about it. The state, for its part, has said it “complies with applicable laws and regulations.” Smart Approaches to Marijuana (SAM), which opposes marijuana… Read more.
Now that the Department of Health and Human Services recommended moving cannabis to schedule 3, the industry is asking what impact a potential reclassification would have on the financial futures of U.S. cannabis companies. The removal of the tax burden from section 280E of the IRS tax code is expected to be one of the biggest changes. But how big would that effect be? Mike Regan, director of research at Excelsior Equities, recently spoke with Green Market Report to break down the math. “Consensus estimates expect about… Read more.
Australia and Israel were the top markets for Canada’s medical cannabis exporters last year, as the quantity of flower shipped overseas continued to surge, according to new figures shared by Health Canada with MJBizDaily. In the April 2022-March 2023 fiscal year, Canada’s exports of medical marijuana flower were 59,986 kilograms (roughly 132,200 pounds), a 48% increase over the previous year’s 40,640 kilograms. The vast majority of exports, however, went to only three countries, meaning exporters risk being dependent on a very… Read more.
Few female entrepreneurs have enjoyed the kind of widespread accolades and recognition in the cannabis industry as Nancy Whiteman. Often called “The Queen of Legal Weed,” Whiteman is founder of the Wana Brands Foundation and CEO and co-founder of Wana Brands, North America’s leading cannabis edibles brand available in 15 states and throughout Canada. Whiteman says Wana Brands’ mission is to create efficacious products that deliver customized experiences for health and wellness or recreational effects. The company places a strong… Read more.
A combination of tax methods could help cannabis companies reduce their tax burden under Section 280E of the federal tax code. If recent case law is applied equitably, the cannabis industry could be sitting on millions of dollars in unclaimed federal tax refunds. The first, a method I call “the 280E asset,” is supported by very old case law and a recent federal claims court decision that barred the practice of deductions being recognized as basis. Basis refers to a business owner’s… Read more.
Over the last two years, the Oklahoma Bureau of Narcotics (OBN) has shut down more than 800 unlawful cannabis farms operating under the guise of the state’s medical cannabis law, KFOR reports. The crackdowns have led to more than 200 arrests and the seizure of nearly 7,000 pounds of cannabis. Mark Woodward, spokesman for OBN, told KFOR that the agency’s enforcement actions are focused on “out-of-state” illegal operations that allegedly have ties to international crime networks, including groups from Russia, Bulgaria, Armenia, and Serbia.… Read more.
Where do marijuana taxes actually go? Taking a deep dive into Colorado, a state that has had legal cannabis sales for over a decade, may open a window on how cannabis taxes are helping millions of people in the community. Starting from 2012, following the passage of Amendment 64 by Colorado voters, which marked the pioneering legalization of adult-use, recreational marijuana sales in the United States, the state has achieved an impressive milestone by exceeding $10 billion in cumulative sales. This accomplishment… Read more.
The Alabama Medical Cannabis Commission (AMCC) intends to “start back at square one” in the medical cannabis licensing process, the agency told a judge on Monday, according to the Alabama Political Reporter. The comments came during a hearing in court where the agency was defending a lawsuit claiming it had violated the state’s Open Meetings Act. During the hearing, the AMCC and plaintiffs in the case agreed to extend a temporary restraining order prohibiting the commission from moving forward with its licensure process… Read more.
When Arizona set out to legalize marijuana, backers emphasized their intent to make the program equitable and ensure that those who had been most hurt by cannabis criminalization were given priority in the new marketplace. Now, a new lawsuit is raising questions about whether the state is adequately meeting those equity goals. Of 26 business licenses that the Arizona Department of Health Services (AZDHS) awarded last year to social equity applicants, nearly all are now owned by other companies or… Read more.
A Pennsylvania judge has ordered the dissolution of a heavily indebted, state-licensed medical marijuana company that was once part of former chewing-gum magnate William “Beau” Wrigley Jr.’s fledgling cannabis empire. Allegheny County Court of Common Pleas Judge Christine Ward issued the dissolution of Goodblend Pennsylvania on Aug. 21, according to Green Market Report. The judge’s order, first reported by Law360, is the latest marijuana-sector setback for Wrigley and his former company. Wrigley took over as the CEO of Florida-based cannabis company Surterra Wellness in 2018. Rebranded… Read more.
Arguably the most important woman in the cannabis industry, holding the position of chief executive officer at Florida-based cannabis behemoth Trulieve Cannabis Corp., a nationwide multi-state operator currently valued at $1.14B, Kim Rivers joined Trulieve at its inception and has since played a pivotal role in advancing the company’s customer-centric strategy, strong growth, strategic development and market-beating profitability. To assure quality, operational integrity and financial success, Rivers insists on supervising every step of the cannabis production process, from seed to… Read more.
Two indices tracking the performance of cannabis businesses on North America’s largest stock exchanges have been discontinued amid waning investor interest in marijuana stocks and billions in losses suffered by the companies. The S&P/TSX Canada Cannabis Index was decommissioned with little fanfare earlier this year after being launched on Jan. 20, 2020, a spokesperson for S&P Dow Jones Indices confirmed in an email to MJBizDaily. A second cannabis index, the S&P/MX International Cannabis Index, was decommissioned in November 2021. The S&P/TSX Canada Cannabis… Read more.
According to the most recent monthly data from the Michigan Cannabis Regulatory Agency, cannabis sales in Michigan set an all-time high in July, totaling $276 million. The majority of these sales were ascribed to the adult-use cannabis industry. Despite this increase in sales, local cannabis firms are having difficulty turning a profit. The state is anticipated to achieve a historic milestone, surpassing $3 billion in revenue for the first time in 2023. This achievement underscores the significance of Michigan's cannabis industry, positioning… Read more.
Red tape, illicit market competition, and a lack of enforcement by regulators have all created a “doom loop” for licensed cannabis companies in New Jersey, one of the state’s leading trade organizations claimed in a recent report. According to the New Jersey Cannabis Trade Association, the state has been too slow to act on processing new business permits and dragged its feet on combatting the illicit market, The Philadelphia Inquirer reported, which has the trade group warning that business conditions need to… Read more.
Josephine & Billie’s is the first dispensary in South Los Angeles focused on being made-for-and-run by women of color. The store is named in honor of entertainment legends Josephine Baker and Billie Holiday, two outspoken Black cannabis enthusiasts in the early 20th century. Baker and Holiday were ostracized for their use of cannabis and became unintentional advocates before their time. The celebrated performers used their respective talents to bend the rules and open the door for future rule-defying women. Whitney… Read more.
Michigan’s marijuana regulatory body is taking too long to crack down on businesses that have violated state regulations, according to a state audit. The state’s Office of the Auditor General said in the report that the Michigan Cannabis Regulatory Agency (CRA) takes up to two years to enact disciplinary action and needs to speed up its processes, according to The Detroit News. “Timely action helps CRA mitigate potential risks to Michigan’s cannabis consumers and reduce future licensee violations,” the report contends. The CRA told… Read more.
Despite a looming deadline with its lender ExWorks, High Times named Shaun Jarvis as interim chief executive officer. The financially troubled cannabis media company saw the departure of CEO Paul Henderson, who was also the interim chief financial officer and a director of Hightimes Holding Corp. on August 15. In his resignation letter, Henderson said he left his position for health reasons. Jarvis’s tenure may be short, however. High Times was given until Sept. 30 to come up with the money to satisfy its… Read more.
A Maryland tax official says the state has found an unusual workaround with Wells Fargo in order to avoid clearly identifying marijuana tax revenue on financial forms, yet another example of the creative workarounds being used by cannabis businesses and regulators amid ongoing federal prohibition. “This was a heavy lift and something we had to do,” Rob Scheerer, director of the Maryland Office of the Comptroller’s Revenue Administration Division, reportedly said at a Maryland Association of Counties conference last week.… Read more.
The California attorney general’s office has been soliciting input from local government and cannabis industry groups as it works to finalize an opinion on the potential legal risks of authorizing interstate marijuana commerce under ongoing federal prohibition, documents obtained by Marijuana Moment show. At least three organizations representing local governments have so far answered the attorney general’s call, saying that they do not expect California would be at “significant risk” of facing federal enforcement action if officials were to authorize… Read more.
We’re about a year into what is undoubtedly the most challenging stretch the cannabis industry has faced since the legalization movement began. The initial hype surrounding the industry’s potential as the next great American boom has slid back to a harsh reality. The combination of local government blunders and federal government inaction, crippling levels of taxation, and an illicit market that largely operates with impunity has mired legal operators with challenges. As a result, businesses are operating in a drastically different climate from the one… Read more.
An increasing number of county and local elected officials across California are acknowledging a longtime cannabis industry grievance – legal companies’ taxes are too high – and cutting local levies on retail sales, business operations or both. At least 14 cities and counties in the state – including key consumer markets such as Los Angeles and San Francisco as well as less-populated, production-focused areas like Calaveras and Humboldt counties – have reduced or eliminated local sales, business or cultivation taxes… Read more.
Cannabis tax revenues in Colorado are outpacing those of cigarettes, and other tobacco and nicotine products, and alcohol, according to an August 16 analysis from the Colorado Legislative Council Staff (LCS). In the 2022-2023 fiscal year, Colorado collected $282.3 million in cannabis tax revenue, compared to $233.9 million from cigarettes, $60.5 million from tobacco products, $56.4 million from nicotine products, and $56.1 million from alcohol. Adult-use cannabis sales in the state carry a 15% excise tax, 15% special sales tax, and 2.9% general sales… Read more.
Before the COVID-19 pandemic, Wall Street was salivating at the cannabis industry. Seemingly every cannabis company was going public, whether it should or not. Investment bankers were happily signing big checks and crowing about the green rush. The requisite puns were consistently bad whether it was an industry “growing like a weed” or “pot stocks are lit.” Now, however, it seems cannabis has lost its buzz for Wall Street. Major Wall Street firms cut equity analysts, and banking dollars dried… Read more.
More Canadian cannabis operators than ever are lodging complaints against rival businesses over alleged transgressions or other concerns, a phenomenon being driven by intense competition and desperate companies looking for any edge they can get, according to experts. Last year, there were 706 such complaints from regulated cannabis businesses about other regulated operators, Canada’s federal cannabis regulator told MJBizDaily. That’s a substantial increase from 2021, when 214 complaints were filed, and 2020, in which there were 182 complaints, according to the… Read more.
Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) is buying the remaining 57.5% of shares in THC-infused drink line Truss Beverage Co. from Molson Coors Canada, the company said Friday. In a statement, Blair MacNeil, President of Tilray Canada, expressed excitement for the move. “In addition to acquiring full and direct ownership of a stable of high-growth brands, this acquisition further strengthens Tilray’s No. 1 cannabis market share position in Canada and positions the company at the forefront of the adult-use beverage sector,” MacNeil… Read more.
The U.S. Census Bureau is updating its survey of American companies to better capture marijuana-related economic activity, part of an effort to “keep up with the nation’s ever-changing business landscape.” For the first time, the 2022 Economic Census—which is being conducted right now and asks businesses about their activities from last year—includes options for respondents to identify themselves as part of the cannabis economy. “While there are no specific questions about cannabis in the 2022 Economic Census,” the bureau said on its… Read more.
Marijuana retailers across the United States are adjusting to handling and securing more cash in-store after Mastercard’s abrupt decision last month to halt millions of dollars in cannabis purchases involving its popular debit card. Operators are also bracing for the possibility that global financial giant Visa will follow suit while facing growing threats their increasingly cash-heavy operations will become even more attractive to criminals. Some marijuana retailers are zeroing in on improving in-store communication with customers and the overall shopping experience in… Read more.
Historically speaking, the golf course has been a place for men. After all, it’s an easy excuse for leaving a chaotic household or the office for half the day. Not many sports provide four hours of uninterrupted play where one can develop close connections with friends and business colleagues. One of the most mentally challenging games, golf tests one’s ability to think strategically and get out of challenging situations. Now, more women than ever are picking up the clubs and… Read more.
Multistate operator Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) isn’t really interested in M&A these days. Instead, the company standing its ground, waiting on some of its core U.S. state markets to graduate from medical-only to adult-use. “Jushi is in a very unique situation in the industry where our large footprint in Pennsylvania and Virginia, including one Ohio store, means – excluding California – approximately 71% of our retail stores will likely flip to adult-use at some point in the… Read more.
The newly elected Missouri state auditor, Scott Fitzpatrick, launched a formal investigation into how the state oversees its medical and recreational marijuana industries, fulfilling a campaign pledge he made last year in his run for the office. According to The Missouri Independent, the audit kicked off on Aug. 2 when auditors met with officials from the Department of Health and Senior Services, which houses the state Division of Cannabis Regulation, the state agency tasked with overseeing the marijuana trade. Fitzpatrick told The… Read more.
Leading Snoop Dogg’s Death Row Cannabis, the most highly anticipated celebrity launch of the year, is Tiffany Chin. Of Course She is. When the world’s most famous hip-hop star and successful businessman, actor and cannabis activist personally taps you to launch his highly anticipated new brand, chances are it’s because you’re the best. And make no mistake, Tiffany Chin is precisely that. Ask Snoop about his head of cannabis ventures at his new Death Row Cannabis brand. Chin’s career took… Read more.
Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) reported its financial results for the second quarter ended June 30, 2023, as revenue fell slightly to $129.2 million from last year’s $129.5 million, but improved over the previous quarter’s revenue of $124.5 million. However, it beat the Yahoo Finance average analyst estimate for revenues of $124 million. Columbia Care also reported a net loss in the quarter of $28 million, an improvement over last year’s net loss of $53 million and better than the previous… Read more.
Top executives at Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) did their best this past week to convince stakeholders that the business is now making progress on a “path to profitability,” as Chief Financial Officer Judy Hong put it during the company’s second-quarter earnings call. Hong and CEO David Klein tag-teamed during the call to argue that cost-cutting measures, a strategic pivot to an “asset-light” business model, and further investment in brand partnerships, such as the one the company has with… Read more.
As GMR reported financial numbers last week for the cannabis industry, Hawthorne Gardening Co., the subsidiary responsible for marijuana cultivation under Scotts Miracle-Gro, saw its sales further diminish in the quarter ending on July 1st. Based in Ohio, Scotts experienced a 6% drop in overall sales, amounting to $1.12 billion. This decline was primarily attributed to a substantial 40% reduction in sales at Hawthorne, as outlined in an official press release. The revenue stemming from Hawthorne's sales of hydroponics, horticulture, and lighting supplies for… Read more.
Several years ago, I worked with a marketing team that wanted to convey their company’s technology was driving evolution in their industry. The tagline the team settled on was “The revolution will be televised.” But that R at the beginning of the word makes a big difference. Evolution and revolution are two very different things. Revolution—from the same root word as revolve—refers to a turnaround, be it sudden or gradual. It implies a complete or radical change from the current… Read more.
The New Mexico Attorney General’s office is investigating a cannabis facility for alleged wage theft and human or labor trafficking, KOB 4 reports. While the AG’s office has confirmed the investigation, no arrests have been made. According to the report, there were several signs written in both English and Mandarin at the facility and several Chinese people were transported to Albuquerque for medical care. One of the workers, through a translator, told KOB 4 that the raid was a “mistake.” “They did have lots… Read more.
Brandon Kanitz, CEO of Grand Rapids, Michigan-based marijuana company Fluresh LLC, moved to Traverse City, Michigan, in September 2020. The COVID-19 pandemic had closed schools, the family man needed help with child care and his wife’s family lived in the Grand Traverse region. But moving put Fluresh in violation of Grand Rapids’ medical marijuana social equity system, which requires 25% local ownership. The city’s licensure scoring system provided “bonus points” to companies that committed to local ownership, a diverse workforce… Read more.
After the markets closed on Wednesday, NewLake Capital Partners, Inc. (OCTQX: NLCP) announced its financial results for the second quarter ended June 30, 2023. The real estate lender reported that the second quarter revenue increased 8.2% to $11.4 million. NewLake also reported that its quarterly net income was $5.8 million, while the funds from operations (FFO) totaled $9.5 million, and the adjusted funds from operations were $9.9 Million. The company gave AFFO guidance for the full year 2023 of $39.8 to $40.8 million, an increase… Read more.
Retail trends generally roll in waves, but the waves look more like oscillations in the cannabis industry. Michigan is an excellent example. By 2016, before the state legalized adult use, retailers and speculators were snapping up storefronts at three to five times the going rate. That enthusiasm was unsustainable. Today, you’ll still find dispensaries paying twice as much per square foot as their nearest neighbor, but you’ll also find them paying a lot less. “The price per square foot was $80.… Read more.
Chicago Atlantic Real Estate Finance, Inc. (NASDAQ: REFI) announced its financial results for the second quarter ended June 30, 2023. The commercial mortgage real estate investment trust reported that its net interest income fell 8.3% sequentially to approximately $13.7 million. However, this was an increase over last year’s net income of $11.8 million for the same time period. The company attributed the drop to the impact of the timing of early principal repayments and the lower average principal outstanding during the quarter. Chicago… Read more.
Phillip Morris, one of the world's largest tobacco companies, is gradually entering the thriving marijuana industry. Reports indicate that the tobacco giant is acquiring an Israeli med-tech company called Syqe Medical for an impressive sum of $650 million. This isn't the first time Philip Morris has invested in Syqe; they previously invested $20 million in the company in 2016. Syqe Medical specializes in a pharma-tech product, a metered-dose inhaler designed for pain reduction treatment using medical marijuana. Interestingly, this potential acquisition news… Read more.
Notorious Mafia kingpin Al Capone never filed a federal income tax return, claiming he had no taxable income. Before he was convicted of tax evasion in 1931, he boasted, “They can’t collect legal taxes from illegal money.” The rationale might resonate with cannabis companies in the United States, which manufacture and sell a federally illegal product but are expected to pay federal, state, and local taxes anyway. In fact, companies nationwide have been racking up tax debt at an alarming rate.… Read more.
Canada’s federal government accounts for a growing share of the unpaid debts racked up by failed cannabis companies, lending credence to claims the nation’s nascent adult-use industry is suffering from pricey fees and heavy taxation. A review of recent insolvency filings by MJBizDaily found that the Canada Revenue Agency, the federal tax collection body, and Health Canada, the national department in charge of regulating cannabis production, are commonly among the biggest unpaid creditors for insolvent marijuana producers. In the 2021-22 fiscal year,… Read more.
It’s an old Wall Street strategy on dividends – getting paid to wait. In cannabis stocks, this could be the way to go since valuations have been terribly slow to recover. Year-to-date cannabis stock performance has lagged other sectors. The AdvisorShares Pure US Cannabis ETF (MSOS) is down 23% year-to-date and has tumbled 52% for the past year. The Global X Cannabis ETF (POTX) has also slid 36% year-to-date and 60% for the past year. Compare that to the iShares… Read more.
Mind Medicine (MindMed) Inc. (Nasdaq: MNMD), (NEO: MMED) reported its financial results for the second quarter ending on June 30. The company has no revenue to report at this time, but the net loss for the quarter increased to $29.1 million versus last year’s net loss of $17 million for the same period in 2022. It did note that it had cash and cash equivalents totaling $116.9 million versus $142.1 million as of Dec. 31, 2022. MindMed said it believes it has enough… Read more.
The New Mexico Regulation and Licensing Department on Tuesday filed a petition seeking a preliminary injunction against Sawmill Sweet Leaf, LLC, alleging the company has been diverting cannabis out of state and manufacturing cannabis concentrate without a permit. In a statement, Linda Trujillo, superintendent of the Regulation and Licensing Department, said “A key component of compliance actions is the ability to suspend licenses immediately if they pose an instant threat to the health, safety and lives of consumers.” Regulators are accusing Sawmill Sweet… Read more.
Chicago-based Cresco Labs and Columbia Care called off their $2 billion cannabis megamerger Monday, citing “evolving” market conditions that include falling stock prices, tightening credit and flattening industry sales. The companies also scratched the $185 million sale of cannabis facilities in Illinois, New York and Massachusetts to rapper/producer Sean “Diddy” Combs, which were part of required antitrust divestitures for the merger. “In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction… Read more.
Mastercard’s new hardline demand that banks and payment processors immediately halt cannabis transactions involving its debit card has upended the marijuana industry and put more licensed operators at financial risk, industry insiders told MJBizDaily. The latest development, first reported by Bloomberg, is expected to affect adult-use and medical marijuana retailers the most as well as their customers. Those consumers will likely revert back to the days of cash-only transactions – a throwback in an era when digital wallets are used to buy… Read more.
This article will discuss the 26 biggest marijuana companies in the world, understand some recent industry trends, and navigate the future of the marijuana industry. If you want to skip our detailed analysis, you can head directly to the 5 Biggest Marijuana Companies in the World. An Analysis of the Cannabis Industry According to a report by Fortune Business Insights, the global cannabis market was worth $43.72 billion in 2022. The industry is expected to reach a valuation of $57.18 billion by the… Read more.
Nevada cannabis operators and other stakeholders lobbied for structural changes to the state’s adult-use and medical marijuana programs, and the legislature answered by approving several industry-friendly bills during its most recent session. The industry-backed changes signed into law last month by Gov. Joe Lombardo included eliminating and capping various fees, reassessing penalties for operating violations and creating a dual license for retailers serving both medical patients and recreational consumers. The policy overhauls, which garnered bipartisan support in Nevada’s Democrat-controlled Legislature,… Read more.
New York regulators are now officially accepting applications for marijuana businesses interested in organizing cannabis farmers markets in the state. Just two days after the Cannabis Control Board voted to authorize what they’re calling Cannabis Growers Showcases (CGS), regulators opened the applications and posted guidance and templates for municipal approval for the events. “A CGS can take place in various locations, including standalone, temporary retail locations; licensed retail dispensary locations; licensed conditional cultivator or processor locations; or other approved event locations,” the… Read more.
More Cookies investors have sued the cannabis industry darling, claiming the prominent California-based marijuana brand mismanaged their $15.5 million through “multimillion dollar kickbacks and other self-dealing” that benefited company founders at investors’ expense, court documents filed this week show. But what could be a more troubling sign for Cookies as well as the struggling marijuana industry, Cookies allegedly ran out of money last summer when it missed a key valuation and then “burned through most of” an additional $23 million… Read more.
According to a report from Rock Island, Illinois police, Julie Devinney, an employee in the cannabis industry, tragically passed away on Friday morning at a Green Thumb Industries' (OTCQX: GTBIF) facility. The police report, authored by Officer Austin Frankenreider and obtained by WeedWeek, provided additional insights into the incident. First reported by Weedweek, the death left many stunned. Devinney's supervisor, Amy Hermiston, informed the police that Julie had been experiencing breathing difficulties for some time. She had to leave work early… Read more.
Morón's tenure has brought a generation of women entrepreneurs to the fold. Gia Morón, president of Women Grow, a professional network for women in the cannabis industry, is set to depart from the organization, effective July 31. Morón is stepping down to devote more energy to her business ventures, according to a release Thursday. The company’s board chairwoman and CEO, Dr. Chanda Macias, will maintain her leadership role. “Gia Morón was fundamental and instrumental to the growth and success of so many… Read more.
A Massachusetts cannabis testing laboratory is accusing the Cannabis Control Commission (CCC) of retaliating against it after its CEO testified to lawmakers about public health concerns and lab fraud related to the state’s cannabis industry, the Boston Herald reports. During a hearing Tuesday testifying on bills that would change the way the cannabis industry operates in the state, MCR Labs CEO Michael Kahn said the “CCC enforcement staff may be misusing investigations as a pretext to silence and harass licensees.” Kahn said… Read more.
For people with disabilities, being able to navigate a website is just as important as the accessibility to buildings that’s required under the Americans with Disabilities Act (ADA). Signed into law more than 30 years ago, the ADA eliminates discrimination against people with disabilities in all public places, including office buildings, public transportation, schools and any other public place. While there isn’t a law that specifically calls for company websites to comply with the (ADA), the expectation has developed over… Read more.
Multinational tobacco giant Philip Morris International is buying the Israeli cannabis tech firm Syqe Medical in a deal worth up to $650 million, according to the Israeli business newspaper Calcalist. Syqe’s chief product is a metered-dose pharmaceutical-grade inhaler that allows patients to measure an exact dose of medical cannabis. If completed, the deal would mark one of the biggest investments in the cannabis space by a tobacco producer in recent years. In 2018, Altria Group, one of the largest tobacco companies in… Read more.
Vermont’s cannabis companies are ineligible for federal disaster aid for losses caused by flooding in the state last week, VT Digger reports. During a press conference Monday, Carl Dombek, public information officer for the Small Business Administration, said the agency has to “follow federal law” and because cannabis is a Schedule I drug at the federal level, the agency is “not able to lend to cannabis dispensaries.” Chelsey Smith, Federal Emergency Management Agency (FEMA) individual assistance branch director, told VT Digger that… Read more.
A top Maryland marijuana regulator says the state’s proactive approach to legalizing cannabis has allowed it to implement a system that effectively balances three key priorities: safety, access and equity. When the state’s legalization law took effect at the beginning of the month, nearly 100 existing medical marijuana dispensaries were already approved to start serving adult consumers. And a testament to the success of the rollout is the fact that Maryland retailers sold over $10 million worth of legal cannabis in the… Read more.
The U.S. marijuana wholesale market has apparently reached a bit of stabilization this year, after a precipitous drop in 2022, and has even rebounded somewhat since last year, according to a recent report from Cannabis Benchmarks. For the week that ended July 14, wholesale prices decreased by 3.1% to $1,020, according to the report, but that’s still an increase from December, when wholesale prices had dropped to $955, Benchmarks reported at the time. The spot index report found that wholesale prices have… Read more.
Now that most of New England has legalized cannabis in some form or another, it’s worth looking at which states are the largest markets. While the smaller states with the least population are expected to be the ones with the lowest total sales, the largest state – New York is lagging. In just five years, Massachusetts has become the leader in the region having reached the billion mark in just two years. New Jersey is in second place, but quickly… Read more.
Metrc didn't send invoices for nine years, but wants unpaid fees. A Colorado licensee has been fighting Metrc over unpaid fees for tags and in the latest round a judge said Metrc could withhold tags – potentially shutting down the business. Natalie Romolt is the Chief Executive Officer and owner of Colorado-based National Green Source (Green), which she acquired in 2018. Metrc is the vendor chosen by the state of Colorado to issue seed-to-sale tracking devices for the regulation of legal cannabis plants. Licensees in the… Read more.
New York City officials have announced they’re seeking lenders to support a marijuana equity fund that will promote participation in the industry by people who’ve been disproportionately impacted by criminalization. The New York City Economic Development Corporation (NYCEDC) posted a request for proposal (RFP) on Tuesday, soliciting lenders and an administrator for its Cannabis NYC Loan Fund, which will provide low-cost financing to social equity applicants looking to enter the marijuana market. Officials are aiming to raise $20-30 million for… Read more.
This year, Colorado's marijuana sector suffered a severe setback when sales for 4/20, a major cannabis-related festival, were deemed the "worst" in five years. As MJ BIZ reported, The Marijuana Industry Group, a Denver-based trade organization, has expressed alarm about the industry's deteriorating status, which has seen decreased sales, firm closures, and staff layoffs. An excess of cannabis, insufficient demand, increased competition from other jurisdictions, dropping prices, a lack of cannabis tourism, and the persistent attraction of the illicit market all contribute… Read more.
250 years after the original Boston Tea Party, cannabis protests against 280E. As hopes for Federal legislative relief for the cannabis industry begin to fade, the focus has returned to the issue of 280e. In that spirit, MariMed Inc. (CSE: MRMD) (OTCQX: MRMD) surprised the crowds at Boston Harbor when they boarded the Liberty Star schooner and reenacted the tea party revolution. The executives dressed in colonial costumes tossed boxes with the word “weed” overboard instead of tea and chanted anti-280e slogans. MariMed CEO… Read more.
For the past couple of years, the cannabis industry has faced significant challenges, with a bear market persisting. Plummeting flower prices, burdensome debt payments, and plateauing sales in mature markets have contributed to this situation. There was hope that the industry's fortunes would improve with the passage of banking legislation like the SAFE Act or significant developments such as TerrAscend's approval to move to the Toronto Stock Exchange. Surprisingly, a potential solution could lie in something seemingly straightforward like 280e. As… Read more.
Canopy Growth Corp., a Canadian cannabis company, experienced a significant decline in its stock value on Wednesday. The stock plummeted approximately 22% to reach 46 cents per share. In light of these circumstances, Eight Capital analyst Ty Collin revised his price target for Canopy Growth, setting it at $0 instead of C$1.75 ($1.32) per share. Collin also reiterated a sell rating for the company, stating that it is no longer appropriate to consider Canopy Growth as a viable business. Canopy Growth… Read more.
When Ben Kovler can’t sleep, it’s a sign that something’s wrong. In 2015, for example, after the Chicago-based marijuana multistate operator won three of the 20 medical cannabis cultivation licenses up for grabs in Illinois, the founder and CEO of Green Thumb Industries couldn’t sleep. The former math teacher and private equity executive thought that the company was biting off more than it could chew, and he wasn’t sure Green Thumb had the money to build out three facilities. So… Read more.
Despite a quieting of headline-making layoffs in the cannabis industry over the past year, the industry continues to face challenges ranging from a robust illicit market to the lack of any progress on federal legislation. And as a result, cannabis companies continue to quietly downsize their operations, as revealed by recent company filings with the Canadian Securities Exchange. Fewer Bodies4Front (OTC: FFNTF) laid off 58 employees in June, according to the company’s Form 7 update from Friday. “Across all subsidiaries,… Read more.
Colorado’s regulated cannabis industry suffered its “worst 4/20 in five years,” according to the Marijuana Industry Group, citing a roughly 14% decline in April marijuana sales from the same month last year. “Marijuana sales in the month of April haven’t been this low since 2018,” the Denver-based trade group noted in a news release. Monthly figures released by the Colorado Department of Revenue show nearly $131.6 million in total marijuana sales for April. That’s down from $153 million in sales in April 2022. Neither the Department… Read more.
New York Gov. Kathy Hochul’s office appears to have put an indefinite hold on an idea floated in May by state regulators for marijuana farmers markets, a plan popular with growers because it would have provided a safety valve for hundreds of pounds of unsold marijuana crops from 2022. The idea was first announced by the state Office of Cannabis Management almost two months ago, at which point OCM staff said they were hoping to have some farmers markets operational by… Read more.
California-based marijuana multistate operator MedMen Enterprises hired Ellen Deutsch as CEO and Amit Pandey as chief financial officer. One of the few women installed in the top role at a marijuana MSO, Deutsch “succeeds interim CEO Edward Record” effective immediately, according to a news release. Deutsch is at least the fifth CEO to lead MedMen since January 2020. “Ellen’s leadership and strong operational experience in the public cannabis sector will prove invaluable as we complete our restructuring plan and transition into a new phase… Read more.
Unpaid regulatory fees owed by cannabis companies to Canada’s federal government jumped more than 200% from a year earlier, to almost 4 million Canadian dollars ($3.1 million) as of the end of March, MJBizDaily has learned. The overdue fees have grown every year since 2019, as cannabis businesses licensed by the federal government struggle under the weight of taxes, fees, an intensely competitive market and poor business decisions. For the 2022-23 fiscal year, the fees in arrears grew to CA$3.9 million, 225%… Read more.
Cronos Group has received a number of expressions of interest about a possible sale and is reviewing those offers, the Toronto-based cannabis producer said. “Cronos is in the initial stages of reviewing these indications of interest, and there can be no assurance that any agreement or transaction will result therefrom,” the company said in a news release. Reuters reported Thursday that Cronos is exploring a potential sale. Cronos is currently working with a financial adviser to handle the expressions of interest from other companies,… Read more.
Nearly a decade after Colorado ushered in legal adult-use cannabis sales, police in the state’s capital city report a significant drop in illicit product on the streets. According to the report from Denver’s municipal government, the city – which was the first in the U.S. to open adult-use marijuana retailers – has seen a 74% reduction in the amount of illegal marijuana processed by police since 2014. Denver’s leaders attribute that to a decrease in demand for unregulated products and the potential… Read more.
California-based marijuana distribution giant Herbl is going to the courts in a bid to recover some of the roughly $10 million it claims retailers owe the company, which fell into receivership in June. At the same time, according to court and investor documents, at least one of Herbl’s former brand partners – Sunset Connect – is suing to recover a six-figure debt the San Francisco maker of pre-rolls claims that Herbl owes and refuses to pay, records show. The unprecedented struggle over… Read more.
Considering how lengthy national cannabis prohibition and the subsequent societal brutality of the War On Drugs were, it’s quite daunting to consider that recreational cannabis has been legal in Colorado for nearly a decade. Since the 2012 bill Amendment 64 passed by an 11% margin, the Rocky Mountain State’s cannabis industry has grown to support the livelihoods of some 41,000 people at its highest point of job creation and sold $1.7 billion in total retail sales in 2022 and more… Read more.
Here we are, going through another quirky cycle in the cannabis industry. During times of change and downturn, many pause to reflect where they are—and where they’ve been. I found myself doing exactly that as I took a two-week break from a crazy twelve months of heavy travel in my first year with Grove Bags. With so many others sharing their challenges and frustrations with the current state of the industry, I suppose this moment inevitably would have come for… Read more.
In April, cannabis giant Curaleaf received a disconcerting notification from the New Jersey Cannabis Regulatory Commission (CRC) indicating regulators planned to deny license renewals for almost all the sprawling multistate operator’s locations in the Garden State. The notice cited a recent cultivation facility closure, staff reductions, and clashes with labor unionization efforts as justification. The development quickly drew the ire of Chief Executive Officer Matt Darin. An otherwise amiable and upbeat fellow, he wasted no time in responding to the unprecedented CRC… Read more.
The large-scale merger of marijuana multistate operators Cresco Labs and Columbia Care is in question after the companies failed to divest assets necessary for regulatory approvals by the June 30 deadline. It’s not clear if the companies are still working toward completing the transaction or if they will abandon it. “At this stage, Cresco and Columbia Care are working amicably with respect to the next steps in relation to the transaction and will provide further updates in the near future,” the companies… Read more.
California industrial agriculture firm and investor Roots Properties has filed suit in Los Angeles Superior Court against a pair of cannabis companies that it said undermined a six-figure loan agreement through “intentional sabotage” of their own grow operation, from which 90% of the profits were supposed to go to Roots. According to the lawsuit, Island View Ranch LLC and Island Breeze Farms LLC struck an investment deal with Roots Properties for $400,000 in loans and another $350,000 line of credit, from… Read more.
A $200 million fund to support social equity marijuana retailers is now certain to be fully funded, following a new $150 million investment deal with Chicago Atlantic, Gov. Kathy Hochul’s office announced Friday. Chicago Atlantic Admin LLC committed up to $150 million in senior secured capital for the Social Equity Cannabis Investment Fund, which will be used on a rolling basis to lease dispensary space for qualified cannabis retail locations. The funding deal delivers on a pledge made by Hochul in March 2022 to… Read more.
Recreational sales for the month rang in at $100.7 million. Arizona recreational marijuana sales passed the nine-figure mark for the first time in March since the adult-use market launched in January 2021, according to data from the state Department of Revenue. That month, recreational cannabis sales inched past the threshold for a final tally of $100.7 million, in addition to $32 million in medical marijuana sales. In April, however, the adult-use market came down a bit and hit only $86.4 million… Read more.
Even with the recent financial and tax woes roiling California’s marijuana industry, there’s little doubt that it remains the world’s largest cannabis market. The state will ring up nearly $5.9 billion in legal recreational and medical marijuana sales in 2023, the recently published MJBiz Factbook estimates. To put that in perspective, marijuana sales in California could support the economy of a small island nation. For example, the gross domestic product for the Caribbean island nation of Barbados will total $6.1 billion in 2023, according to the International… Read more.
Cannabis software company Metrc renewed its contract with the state of Ohio to provide seed-to-sale tracking services for the state’s medical marijuana program. Financial terms were not disclosed. The Florida-based software maker was first contracted by the Ohio Department of Commerce in August 2017 to help the state develop and administer a track-and-trace infrastructure. Ohio launched its medical marijuana program in January 2019. Efforts are underway to expand the Midwest market to adult-use sales. In late May, a bipartisan group of Ohio legislators reintroduced a recreational… Read more.
A significant player in the psychedelics industry has received a $5 million infusion from hedge-fund billionaire and New York Mets owner Steve Cohen and his wife, deepening the couple’s efforts to bring mind-altering therapies into the mainstream. The Steven & Alexandra Cohen Foundation is donating the funds to MAPS, or the Multidisciplinary Association for Psychedelics Studies, a nonprofit that has pushed for more research on psychedelic drugs since 1986. The organization is engaged in a financially-intensive push to get the… Read more.
Prices have been on a rapid slide since the summer of 2021, reaching record lows by the end of last year. After nearly a two-year stretch of deflation, marijuana prices in Colorado are showing the first signs of life since October 2021, according to the Colorado Department of Revenue. The retail price for a pound, which had plummeted from a peak of $1,731 in January 2021 to a historic low of $649 by April 2023, has risen to $703 in June 2023.… Read more.
Curio Wellness, a cGMP-certified, vertically integrated cannabis company, has been granted the first-ever US patent for its cannabis sleep product, Good Night by Curio. The patent, designated as Utility Patent 11,654,130, was awarded to Curio Wellness on May 23, 2023, and will remain in force until January 2042, per a press release. Good Night, the cannabis sleep aid line available in Maryland has been leading the market since its introduction in 2021. The product, in the form of ratio tablets, is designed to… Read more.
The U.S. cannabis industry is benefiting from long-desired tax relief now that an increasing number of states – 20 so far – have approved laws that exempt, or “decouple,” businesses from Section 280E of the federal tax code. This spring, legislators in Connecticut, Illinois, New Jersey and New York passed legislation that will allow cannabis companies to deduct business expenses from their state income taxes, despite those companies remaining illegal under federal law. The savings could be in the millions… Read more.
The agency examined incarceration rates over the past 20 years, which ignored data from the 1980s. The United States’ War on Drugs spans decades, but Missouri’s licensing process failed to consider much of the impact the policy had on disadvantaged communities, critics say. The crux of the problem: The state’s Department of Health and Senior Services only examined incarceration rates over the past 20 years, The Independent reported. Critics argue that this ignores the crucial period of the 1980s, when city jails… Read more.
Herbl, a major licensed California marijuana distribution company, is in receivership after falling behind on a key loan, a source close to the situation confirmed to MJBizDaily on Tuesday. The collapse of Herbl – which reportedly handled $700 million worth of product sales in 2022 – is the most prominent failure of a cannabis company in the state to date and has major implications across the industry. Potentially tens of millions of dollars in unpaid invoices are due to brands across the state, which… Read more.
In an effort to further diversify the cannabis market and welcome more women of color, Sheena Roberson, founder of Cannabis Noire, is hosting the inaugural Women of Color Cannabis Business and Wellness Experience: “High-er,” taking place June 24-25 at the StoryFactory and Drexel University in Philadelphia, PA. The conference aims to create a secure and supportive environment where Black and brown women can amplify their voices, gain valuable insights and forge new opportunities. The event draws women from all corners… Read more.
At least five cannabis companies have recently announced equity deals. It’s been well documented that equity capital raises in cannabis have withered on the vine. As stock valuations plunged – by as much as 90% in some cases – investors had little interest in getting more stock in a company. In fact, according to Viridian Capital Advisors, which tracks deals in the cannabis industry, capital raises are off to a multiyear low. Year-to-date capital raises are down 85.3% from 2022.… Read more.
In St. Louis in the 1980s, if you got caught with even a “butt of a joint,” you were going to do jail time, said Bob Ramsey, who was assistant public defender at the time. Ramsey particularly remembers the head of the prosecutor’s marijuana task force, under then-Circuit Attorney George Peach. “She was just absolutely ruthless and brutal,” Ramsey said. “You didn’t even bother to talk to her because you knew you were going to get a plea-bargain offer for… Read more.
Programs must address systemic inequities that exist across the board. In the run-up to the national Juneteenth holiday, which marks the date in 1865 when Black Americans in Texas learned they’d been freed by the Emancipation Proclamation, Green Market Report reached out to a pair of Black women cannabis industry leaders to get their thoughts on how far the marijuana industry has yet to go on racial equity. The answer was simple: It’s so far that it’s hard to even put into… Read more.
Wholesale hope and new retail entry rules for existing medical operators has provided spark. With contentious headlines now in the rearview mirror, RIV Capital (OTC: CNPOF) seems to be chugging along as New York’s legal cannabis industry ugly cries every night. The company hosted its fourth quarter and fiscal year-end 2023 earnings call Thursday, during which interim CEO Mike Totzke expressed optimism about the RIV’s position in the New York cannabis market. “We substantially completed the expansion of Etain’s Chestertown-based cultivation and… Read more.
According to a lawsuit reported by Green Market Report, Glass House Brands Inc., operating under the name Catalyst, a California cannabis company based in Long Beach, has been accused of unlawfully transporting and shipping cannabis across state lines on airplanes. On June 6, Catalyst filed a lawsuit against Glass House in Los Angeles County Superior Court, alleging that Glass House is profiting from the illegal cannabis market in California, undermining the legal market and businesses that adhere to regulations. The… Read more.
MJ BIZ reported recently that California state officials have stated that approximately 94% of cannabis excise taxes owed by marijuana firms have been paid. Still, they also recognized a fall in total sales and tax collections in 2022. Two primary taxes apply to the sale of cannabis in the state: the standard sales tax, which varies from 7.25% to 8.25% depending on the jurisdiction, and a special 15% excise tax on cannabis collected by sellers and paid to the state. As… Read more.
Cannabis companies will be able to deduct business expenses at the state level. Connecticut on Tuesday became the latest in a national trend of states with operational marijuana markets to approve state-level relief from the 280E provision of the federal tax code. According to Marijuana Moment, the new state budget that Gov. Ned Lamont signed will let cannabis companies claim state tax breaks in the same amount they would have been entitled to from the federal government if 280E did not exist.… Read more.
A cannabis oil company is poised to go public next week in a landmark deal, sidestepping Canada’s downtrodden traditional IPO route after merging with a long-standing, listed crude producer. Zyus Life Sciences Inc. completed a reverse takeover of Phoenix Canada Oil Co. Ltd. on June 9, raising C$20.1 million ($15.1 million). The company, which makes cannabinoid drugs to treat pain for osteoarthritis and bone cancer, is set for its trading debut as Zyus Life Sciences Corp. (ticker ZYUS CN) on… Read more.
Nearly $23 million in legal cannabis sales was recorded in the month of May - an increase from April. The state Department of Consumer Protection (DCP) recorded approximately $21 million in adult-use cannabis and medical marijuana sales last month. Of the $23 million total in May, $11.5 million came from adult-use sales and $11.2 million came from the medical marijuana market, DCP officials said. State data shows that adult-use cannabis sales have increased each month this year. State officials said medical marijuana… Read more.
State regulators and government officials nationwide are taking steps to ramp up enforcement against cannabis companies that fail to pay vendors, taxes or business fees. New Jersey is the latest to take a hard line against delinquent operators, revoking cultivation and manufacturing licenses in early June from a company with unpaid fees. It joins California, Michigan and Nevada, New York and Oregon in targeting such companies. Some of these states are implementing enforcement measures, while others are taking steps to… Read more.
Colorado Governor Jared Polis passed a ground-breaking law allowing the sale of marijuana products online. After a month of consideration, this landmark decision ushers in a new era for the state's cannabis business. By embracing e-commerce, Colorado joins other progressive states at the forefront of integrating online platforms into the cannabis industry. This progressive move not only enhances accessibility for consumers but also paves the way for innovative business opportunities within the industry. Colorado's leadership in embracing online marijuana sales sets a precedent… Read more.
Fire and Flower Throw in the Towel, Citing Significant Losses An initial order for creditor protection has been granted by a Canadian court to Fire & Flower Holdings and its cannabis-related businesses due to significant net losses of more than $150 million ($200 million) that have accrued since 2018. The Companies Creditors Arrangement Act (CCAA) was used by the Ontario Superior Court of Justice to grant this order, which enables the company to continue operating as it currently is and interact with… Read more.
Plant-touching and ancillary cannabis businesses are operating within one of the world’s most fragmented regulatory landscapes. And as more U.S. markets come online, keeping track of cannabis compliance requirements will only become more complex. The importance of marijuana regulatory compliance cannot be overstated. Implementing a robust compliance program is critical to protecting not only businesses but also licenses, pipelines and reputations. It is also key to creating a culture of accountability that encourages employees to follow the rules, which frequently… Read more.
The New Jersey Cannabis Regulatory Commission (CRC) unanimously voted 5-0 to withdraw marijuana cultivation and manufacturing licenses from an operator in the state due to outstanding fees, as reported by MJBiz. Harmony Foundation, the operator that runs the sole adult-use dispensary in Hudson County, made a partial payment of $100,000 for its Class 5 retail license but failed to pay for its Class 1 cultivation and Class 2 manufacturing permits. Despite the license revocation, Harmony is still allowed to sell recreational… Read more.
Estimates say the illicit market accounts for roughly 60% of San Francisco cannabis business. San Francisco has apparently settled on a deal for a temporary ban on new marijuana business permits in the city, after an initial proposal to indefinitely prohibit new license applications was walked back. Under the terms of the measure approved unanimously by the city Board of Supervisors on Tuesday, no new cannabis business license applications will be eligible for consideration until New Year’s Eve in 2027 at the… Read more.
Nearly 25% of cannabis retailers are already in arrears for state taxes. The legal California cannabis industry is in such dire financial straits that it may need a state-funded bailout if it’s to continue operations after this year, according to one longtime industry insider. The most immediate problem is that hundreds of businesses are already behind on their state taxes, and might literally be unable to come up with the cash to pay those bills, said Jonatan Cvetko, the executive director… Read more.
When New York state began laying the groundwork for its recreational cannabis industry last year, officials cast atoning for the harm done by the war on drugs as a cornerstone of the ambitious plan — and promised to give people who were previously convicted of marijuana offenses the first opportunity to sell it legally. Today, that effort appears to be foundering: Although Gov. Kathy Hochul suggested last fall that more than 100 dispensaries would be operating by this summer, just… Read more.
There are some growing concerns from New York pot farmers who have more crop than they can sell, as the state’s recreational marijuana market rollout has moved slower than many expected. So far, a dozen retail marijuana stores have opened since New York legalized it two years ago, including one in the Capital Region. Ryan McCall, a Cannabis Law Attorney at Tully Rinckey, said while retail licenses continue being granted, it can take months for shops to actually get up… Read more.
The company's decision to file for bankruptcy underscores the ongoing challenges in the sector. Fire & Flower Holdings Corp. (OTCQX: FFLWF), a major Canadian cannabis retailer, is seeking creditor protection under the Creditors Arrangement Act (CCAA), the company said Tuesday. The company and a string of its subsidiaries have received an order from the Ontario Superior Court of Justice for creditor protection, marking a notable — yet foreseen — shift in its financial circumstances. Previously, Fire & Flower has been open about its active pursuit for additional… Read more.
Colorado Gov. Jared Polis (D) last week signed a bill to allow online sale of cannabis products. The law requires customers to provide proof of age and that purchases are picked up in person at the retailer’s physical location. The law’s intent is to limit some of the in-person cash transactions at retailers as federal law continues to limit cannabusinesses’ access to traditional financial services, including the use of credit cards, which often makes cannabis dispensaries targets for theft. During debate on the proposal… Read more.
Medical marijuana dispensaries in Arkansas will likely beat the sales they recorded in 2022, a state spokesperson said. After selling $23.9 million in MMJ products in April, licensed dispensaries in Arkansas have sold $94 million so far this year, according to a news release from the state Department of Finance and Administration (DFA). Licensed stores sold $94 million in products for the same time period last year. “On average, patients are spending $787,000 a day at the state’s 38 dispensaries,”… Read more.
The partnership comes months after the company raised $100 million in Series D financing. New-York based LeafLink, a major cannabis wholesale platform, is partnering with Leafgistics, a cannabis logistics company, to coordinate and streamline the storage and movement of cannabis products across the California market. The company said it has also invested an undisclosed sum in Leafgistics. The investment marks a notable step for LeafLink as it looks to harden its system for cannabis commerce, it said, and advance the industry through strategic partnerships. “Through our… Read more.
As the legal marijuana industry grows and gains wider acceptance, a new conflict looms on the horizon. Big Tobacco, well-known for its influence in the tobacco industry, is now focusing on the flourishing cannabis market. The gradual legalization of marijuana has captured the interest of major tobacco companies, prompting them to explore potential prospects within this emerging industry. These industry giants, leverage their substantial resources, well-established distribution networks, and expertise in tobacco product manufacturing, perceive the legal cannabis sector as… Read more.
Leadership cited industry headwinds as the key factor for the move. One of the more prominent national marijuana trade groups, the National Cannabis Industry Association, this week cut its headcount by nearly half in order to save on costs and remain solvent through 2023. The organization’s leadership said the situation reflects broader belt-tightening across the industry. NCIA let go long-serving several senior staffers this week, including Communications Director Bethany Moore, Director of Government Relations Michael Correia, and COO Rob Kellogg,… Read more.
Multistate cannabis operator Trulieve Cannabis Corp. on Thursday announced plans to “wind down” its operations in Massachusetts. The company said the move is part of its broader plan to “preserve cash and improve financial performance.” Since mid-2022, Trulieve has also shut down some of its California assets, exited the Nevada wholesale market, and idled some of its production capacity “to match consumer demand across multiple markets.” The company said it would close its dispensaries in Framingham, Northampton, and Worcester by… Read more.
A top New York state cannabis official vowed to quickly bring the heat now that Albany has granted regulators the power to shut down hundreds of unlicensed smoke shops across New York City. “We are pivoting so that we can begin as soon as possible,” said Tremaine Wright, chair of the New York Cannabis Control Board. “It is coming.” Wright told Crain’s at an industry conference Thursday at the Javits Center that her agency would work with state tax agents, local police… Read more.
New legislation and major policy shifts have been proposed to stabilize the shaky rollout of New York’s adult-use marijuana program, including allowing some of the nation’s largest multistate operators (MSOs) to enter the expanded market by year’s end. Regulators at the Office of Cannabis Management (OCM) recently proposed the revised regulations to jump-start the potential $3 billion market with more retail locations. Regulators also hope to energize a supply chain that currently offers limited business opportunities. As of press time, only 12 retailers had… Read more.
Oregon's leading cannabis company, Chalice, is grappling with a severe financial crisis that has prompted significant measures. According to the ‘Willamette Week’, the company, burdened by debts exceeding $35 million, has filed a request with the Multnomah County court to place five of its subsidiary companies under the control of a receiver. Notably, Chalice operates 15 dispensaries across the state. This recent court action sheds light on the dire situation that Oregon's third-largest dispensary chain faces. Small cannabis businesses have accused Chalice… Read more.
In a move aiming to address the state’s cannabis supply chain glut, the New York Office of Cannabis Management (OCM) announced last week that industry operators will be allowed this summer to host cannabis farmers’ markets in order to sell more product, according to a NY Cannabis Insider report. The plan, announced by OCM Director of Policy John Kagia during a meeting with the Cannabis Association of New York, will see the state’s conditionally licensed growers and retailers team up to organize… Read more.
Last fall, President Joe Biden called on the leaders of the U.S. departments of Justice and Health and Human Services to “review expeditiously” how marijuana is scheduled. The move opened the door to renewed speculation about how descheduling – or rescheduling – marijuana would affect regulated cannabis markets operating across the country. Those of us in the industry were obviously pleased with Biden’s request. But the president’s move also emphasized the need for policy reform that will benefit smaller, independent cannabis businesses – not… Read more.
A majority of the wholesale B2B cannabis business in California is represented by a group of distributors and brands that have engaged a credit association to assess shops to reduce the hundreds of millions of dollars in arrears and deter repeat offenders. The Credit Management Association (CMA), a nonprofit organization with headquarters in a suburban area of Los Angeles, is reviewing invoices and other paperwork from more than a dozen distributors and companies. A "do not sell list" of 25 California… Read more.
The AI-powered cannabis retail platform, Genetica successfully raised $500,000 in a seed funding round. The round was led by Ensemble, CEO of Talent Resources Ventures and Genetica adviser Michael Heller, Show Me Organics, executives from Hara Supply and Mitchell Harounian. This support will enable Genetica to expand its presence in dispensaries across the U.S. and venture into other retail sectors outside of cannabis, including grocery stores and pharmacies, per a press release. "With plans to launch its software in over 350 locations in the US and numerous… Read more.
Cannabis industry earnings calls have been a little quieter this year. Fewer research analysts are covering the U.S. marijuana industry, which experts say reflects the challenging economic headwinds facing the industry, including high taxes, high interest rates, rock-bottom stock prices and the slow pace of federal MJ reform. New York-based Cantor Fitzgerald and Cowen are among the more notable financial-services firms that have dropped coverage of U.S. plant-touching cannabis companies. “It speaks to the unhealthy state of our industry,” Jesse… Read more.
Higher production costs is forcing the company to go lean. Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF), a licensed producer of “organic, certified” premium cannabis, reported a notable year-over-year growth of 71% revenue growth in its first quarter 2023. The rise is attributed to robust growth in the premium cannabis segment and expansion of its product offerings. Rubicon reported a record net revenue of C$8.8 million for the first quarter, and positive adjusted EBITDA for the fourth consecutive quarter – even as the… Read more.
Long after the markets closed on Monday, Acreage Holdings, Inc. (OTCQX: ACRHF, ACRDF) reported its financial results for the first quarter ended March 31, 2023. Revenue fell 1.6% from last year to $55 million. Sales fell sequentially by 2.7% from the fourth quarter. The net loss in the first quarter was $16 million, which was slightly higher than last year’s net loss of $13 million. It was a more normal number than the fourth quarter’s kitchen sink net loss of $119 million.… Read more.
Regulated adult-use marijuana sales in New York state have surpassed $16.5 million since the first dispensary opened in December, state regulators said last week. Despite early estimates projecting sales in excess of $1 billion in 2023, lawsuits and bureaucratic delays have consigned New York’s adult-use market to a slow start. Many licensed equity operators have struggled to secure funding and real estate to launch their businesses, and the multistate operators who hold most of New York’s limited medical marijuana licenses are still shut… Read more.
The Canadian federal government’s revenue service is ramping up pressure on cannabis producers with outstanding excise debt, MJBizDaily has learned, adding more pressure on companies that already are struggling financially. The Canada Revenue Agency (CRA) is said to be raising the possibility of garnishment, liens on plant property and equipment, and legal action. Excise payment debts have soared in recent years, as cannabis producers suffer from a combination of industry-wide overproduction, which is driving down prices, and high taxes at various levels… Read more.
Unionized workers at five Chicago-area PharmaCann adult-use cannabis dispensaries have received a 20% wage hike over three years, the latest pay raise secured by organized labor in the marijuana industry. The increase represents yet another win for organized labor, which continues to pile pressure on major cannabis industry operators across the country. Last week, workers at PharmaCann’s Verilife dispensaries, who are organized by the International Brotherhood of Teamsters Local 777, approved a three-year contract that will see hourly wages increase by… Read more.
Whitney Economics, a cannabis research firm, recently conducted a comprehensive analysis of the impact of federal taxes on the cannabis industry. The findings revealed that in 2022, cannabis operators incurred an astonishing $1.8 billion in additional taxes compared to conventional businesses. Looking ahead, it is projected that this excess burden will rise even further to reach $2.1 billion in 2023. The Reason Behind The Higher Tax Burden for Cannabis Operators Despite the growing number of states that have legalized medicinal… Read more.
A cohort of cannabis industry operators on Tuesday announced a coalition that seeks to raise awareness and offer solutions to severe credit issues that threaten the industry’s stability. The Financial Stability for California Cannabis (FSCC) includes Kiva Sales & Service, Lowell Farms, Nabis Sunderstorm and other key players in California’s cannabis industry which they say comprise 45% of the state’s industry by sales volume. In a statement, Vince Ning, co-founder and co-CEO of Nabis, said “Collections and outstanding debt… Read more.
Cannabis debt has been typically given low ratings if receiving a rating at all. This week, cannabis commercial real estate lender Pelorus Capital Group announced that $50 million in aggregate principal amount of 7% senior secured notes due September 26, 2026 issued by its private mortgage real estate investment trust subsidiary, the Pelorus Fund REIT, have been assigned an A rating by Egan-Jones Rating Company – the highest rating issued to date in the cannabis industry. “We are proud to achieve a cannabis-industry first… Read more.
Net loss for the quarter rose due to lower gross profit and high one-time costs. Las Vegas-based Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) posted a 3% decline in revenue for the first quarter ended March 31, which it primarily attributed to a significant drop in the average price of cannabis in Nevada. Quarterly revenue fell to $24.9 million from $25.7 million in the same period in 2022. Amid recent downturns, the company saw improvements in retail revenue from their SuperStore, as cannabis prices… Read more.
A top California marijuana official says that the U.S. already has an established interstate cannabis market. It’s just been unregulated, forcing cultivators to make the choice between staying legal—but isolating products from each operation to one state—or engaging in illicit activity by selling across state lines. But now that three states have enacted legislation positioning them to authorize marijuana imports and exports, the conversation about the future of cannabis commerce is evolving, with stakeholders, advocates and regulators becoming increasingly mindful… Read more.
The iconic Scottish-American industrialist and philanthropist Andrew Carnegie built his considerable fortune and status as a manufacturing titan on the back of his insatiable pursuit of cost reduction through efficiency. After making a small fortune in the burgeoning rail industry, the young Carnegie was ready for his next opportunity. He had become privy to a revolutionary steel-making technique called the Bessemer process, which used molten pig iron to generate significantly higher output with a fraction of the labor. Carnegie built… Read more.
A group of California distributors and brands representing more than half the state’s wholesale B2B cannabis market has hired a credit association to rate retailers in the hopes of reducing the hundreds of thousands of dollars in unpaid invoices – and reining in repeat offenders. The Credit Management Association (CMA), a nonprofit based in suburban Los Angeles, is analyzing accounts receivables and other documents from more than a dozen distributors and brands. The CMA plans to email each of the… Read more.
Missouri legalization impacted Illinois sales. Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced its financial results for the first quarter ending March 31, 2023. Total revenue increased 12.9% to $69.9 million over last year’s $61.9 million, but fell sequentially by 9% from $76.8 million. It also missed the Yahoo! Finance average analyst estimate for revenue of $74 million. Jushi said that the increase in revenue was due to new dispensary openings from build outs and acquisitions. The company acquired Apothecarium and NuLeaf in Nevada during… Read more.
There was a 57.7% improvement in the adjusted EBITDA loss over the year. Hemp-based CBD giant Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) reported its first-quarter financial results on Thursday ending March 31, 2023. Despite a 12.1% year-over-year fall in net revenue, the company managed to reduce operating expenses by 14%, ending with a solid $61 million cash balance. The financial review for the quarter painted a nuanced picture. While consolidated net revenue was $17 million, down 12.1% from $19.4 million… Read more.
In 2014, Colorado made history as the first state in the country to open recreational dispensaries for legal cannabis sales. No one really knew what to expect, but one thing was clear right away: The infant industry was growing fast. As consumers became more savvy and product lines became more diverse, entrepreneurial-minded individuals working in the space saw a wealth of opportunity. One sector that provided this opportunity hinged on growing interest in vape products. Two Colorado budtenders at a… Read more.
Medical and recreational cannabis markets continue to have a growing impact on the broader U.S. economy, but the state-level impact differs based on each market’s size, maturity and type. And while highly populated states with bigger markets have a larger dollar amount of economic impact, some smaller, less-populated states are generating more impact per person. The total U.S. economic impact from marijuana sales in 2023 is expected to reach $100 billion – up more than 12% from last year, according… Read more.
Graham sees opportunity for both legacy operators and newcomers, but warns against opportunists. Social Impact: Kassia Graham, Cannaclusive Kassia Graham, a vocal advocate for diversity and equity in the cannabis industry, is using her platform to affect change. As the founder of Cannaclusive, Graham noted that the organization is “dedicated to helping to raise the profile of BIPOC in cannabis, whether they are consumers or people within the industry.” She was awarded the 2023 Green Market Report Women’s Leadership Award for… Read more.
Several cuts in the second half of 2022 contributed to a 27% improvement in operating costs. California-based WM Technology Inc., better known as Weedmaps, (Nasdaq: MAPS) shrank its losses to $3.9 million for the first quarter of 2023, from more than $31 million lost in the first quarter a year ago, while also increasing its client base by 12% compared to the same time period. Weedmaps’ monthly paying client list increased to 5,641 from 5,026 in the first quarter 2022, the company… Read more.
Declining prices and out-of-state competition hurt the state's industry. This story was republished with permission by Crain’s Chicago and written by John Pletz. Illinois marijuana sales growth flattened last month for the first time since the state legalized recreational cannabis in 2020, hurt by declining prices and out-of-state competition. April sales totaled $132 million, compared with $131.8 million in same period a year earlier, according to the Illinois Department of Financial & Professional Regulation. The rate of year-over-year revenue growth in Illinois has… Read more.
Cannabis sales in Missouri have topped $350 million during the first three months of adult-use sales, the Missouri Independent reports. And while sales have remained strong, there was a slight dip in cannabis sales in April as adult-use sales fell about 3% from March, to $91 million, while medical cannabis sales slipped nearly 8% to $30.1 million, KSDK reports. Missouri cannabis sales nevertheless remain on track to achieve $1 billion in annual sales this year. Comparatively, it took seven months for neighboring Illinois to reach… Read more.
THE CANNABIS INDUSTRY has been rapidly expanding in recent years, with legal status and widespread acceptance paving the way for significant growth and diversification. As the industry evolves, the role of technology in connecting cannabis brands directly with consumers is becoming increasingly important. However, the limitations of current cannabis apps have created a gap in the market, creating an opportunity for new platforms to bridge the divide. According to an experienced executive in the cannabis technology space, who wishes to remain anonymous, existing… Read more.
Both parties accused each other of not understanding FDA processes. After psychedelic drug company Mind Medicine (Nasdaq: MNMD) released a detailed letter to shareholders pushing back against an attempted board coup by a company called FCM MM Holdings, FCM responded with its own letter to shareholders accusing the current board of botching the company’s strategy as well as other misdeeds. FCM MM Holdings and its affiliates beneficially own 1,368,538 common shares of MindMed Inc., representing approximately 3.5% of the outstanding common shares.… Read more.
A recent report from the Marijuana Policy Project revealed that tax revenue from adult-use cannabis experienced a decline across legal states in 2022, marking the first time this has occurred in the United States. While sales tax from cannabis still generated a respectable $3.77 billion, this figure was slightly lower than the $3.86 billion generated in 2021. Despite declining adult-use cannabis tax revenue in 2022, states reported over $15.1 billion in tax revenue from legal cannabis sales for adults. This figure reflects sales… Read more.
Launching a new product line is hard work. It’s also expensive, especially for startups that may not have the up-front investment for all the equipment, raw materials, labor, packaging, and warehouse space required to create, store, and ship goods that may or may not resonate with the targeted consumers. Knowing this, some companies turn to white-label manufacturers to achieve their goals. White-label companies make products under contract for other businesses that then apply their own branding and sales channels to deliver the… Read more.
StateHouse recorded a net loss of $196 million in the fourth quarter. StateHouse Holdings Inc. (CSE: STHZ) (OTCQX: STHZF) reported total net revenues for the fourth quarter of 2022 increased 68.8% to $25.5 million, compared with $15.1 million in the fourth quarter of 2021. However, it fell sequentially from the third quarter revenue of $30.8 million. The California-based company this week announced its financial results for the quarter and year ended Dec. 31, 2022. Total operating expenses in the fourth quarter were $19 million.… Read more.
In a letter to lawmakers, the Cannabis Industry Alliance of Oregon asked that a bill currently being considered by the House be amended to prevent La Mota – the cannabis company that had hired former Secretary of State Shemia Fagan as a consultant – from continuing its expansion in the state, according to a Willamette Week report outlining the letter. In the letter, the organization said that “Companies that display a flagrant disregard for state laws and fair business practices have no… Read more.
The company asked its shareholders to reject a slate of directors offered up by FCM MM Holdings. Mind Medicine (MindMed) Inc. (Nasdaq: MNMD) (NEO: MMED) reported a net loss of $24.8 million for the first quarter ended March 31, compared with $18.5 million for the same period in 2022. The company does not have revenue to report at this time. Cash Levels As of March 31, MindMed had cash and cash equivalents totaling $129.4 million, compared with $142.1 million at the end of December 2022.… Read more.
The governor of Washington State has signed a bill to allow interstate marijuana commerce, pending a federal policy change. The legislation from Sen. Ann Rivers (R) cleared the legislature last month, and Gov. Jay Inslee (D) signed it into law on Thursday. Before signing the bill, Inslee urged Congress to modernize national marijuana laws, saying that federal legalization “will help our well-regulated cannabis industry remain competitive, while still meeting health and public safety standards.” He also quipped that Washington State needs… Read more.
A 13-day strike at three Chicago-area Rise adult-use cannabis stores that began April 19 came to an end Tuesday after parent company Green Thumb Industries offered unionized retail workers a significant wage increase, union officials said. The nearly two-week work stoppage by retail workers, organized with the International Brotherhood of Teamsters Local 777, is believed to be the longest strike at a marijuana retailer in U.S. history. As incentive to return to work, Green Thumb offered striking workers wage increases of up… Read more.
Terrapin signed a deal in 2021 to acquire property in Auburn. Colorado cannabis company Terrapin Care Station decided to reverse course on a previously announced production facility in the town of Auburn, New York, which a company spokesman said was due to delays in getting the broader market operational. Terrapin Care Station is a second-tier multistate operator, with a footprint in Michigan, Missouri, and Pennsylvania in addition to its home state of Colorado, according to the company website. Terrapin signed a real… Read more.
The West Coast always will be known as the birthplace of the modern cannabis industry, but the past decade has proved being a first mover doesn’t always result in a long-term advantage. When Colorado and Washington opened their doors to adult use in 2012, followed by California and Oregon a few years later, the West Coast seemed destined to carve the landscape of the modern American cannabis industry. In many ways, West Coast companies have been an influential force, albeit… Read more.
In a stunning display of the financial potential of legal cannabis, states across the U.S. have collected a combined total of more than $15.1 billion in tax revenue from adult-use cannabis sales since 2014. As the Marijuana Policy Project's (MPP) latest report reveals, 2022 alone saw over $3.77 billion generated in cannabis tax revenue from adult-use sales. These numbers underscore the critical role that legalization and regulation of cannabis have played in boosting state economies and funding essential social services and programs. Toi Hutchinson, president and CEO of… Read more.
When Adam Bierman started his journey in the cannabis industry in 2008, he was a California kid with a brash personality and ambitions to destigmatize the plant and promote its benefits, both medicinal and recreational. By the time he co-founded MedMen with Andrew Modlin just two years later, the pair had created a business pitch impressive enough to land Bierman at the helm of what would become the most high-profile—and most controversial—cannabis company in the United States. Bierman is blessed… Read more.
Naturae, the company behind Jaunty, also buys wholesale cannabis from eight farms. New York cannabis farmer Nicolas Guarino is battle-scarred from five years of mostly flailing in the national hemp-CBD market, but his six-year-old company, Naturae, now appears poised to do well in the recreational marijuana market, which has already skyrocketed sales for the company. “It is early, but (sales have) been surprisingly high. We were counting on roughly $25,000 in sales per month per store, on average, and we’re… Read more.
Rebecca got involved in cannabis in 2014. Legal: Rebecca Rutenberg, Vicente With more than 50 cannabis clients, legal wizard Rebecca Rutenberg is plenty busy for the foreseeable future, helping them win licenses all over the U.S. East Coast, from Florida to Maine. “I’m in New Jersey, New York, Connecticut, Florida, Vermont, Massachusetts, Rhode Island, Pennsylvania, a little bit in Maine, and of course Maryland,” said the Boston-based attorney. And she doesn’t see that career focus changing anytime soon, as the… Read more.
Cannabis analytics firm New Frontier Data sees brighter days for the U.S. pot industry, projecting $71B of legal marijuana sales in 2030 if the current trend in state-level legalization continues even without legal immunity at the federal level. While 21 U.S. states and the District of Columbia have already legalized weed, cannabis companies struggle with operational inefficiencies as their supplies must remain within state boundaries with no federal protection. Even banking access is limited: SAFE Banking Act which aims to allow… Read more.
Glass House Brands, a Long Beach company widely considered to run the largest cannabis farm in California, is growing pot inside 2 million square feet of Southern California greenhouses. At any given time, the company has 750,000 pot plants in the ground and has the capability to grow more than 300,000 pounds of pot a year. It expects to add another 1 million square feet this year, and it plans on growing more than 5 million square feet of cannabis… Read more.
Missouri plans to license an initial round of 48 cannabis microbusinesses, to be awarded via a lottery in October. The microbusiness licenses “are designed to allow marginalized or under-represented individuals to participate in the legal marijuana market,” according to new release issued by the Missouri Department of Health and Senior Services (DHSS). Microbusiness retail licenses will be available to medical marijuana and adult-use retailers; wholesale licenses will permit cannabis cultivation and manufacturing. Microbusiness wholesale facilities may grow up to 250 flowering cannabis… Read more.
Colorado-based cannabis multistate operator Schwazze is deepening its presence in New Mexico with the planned acquisition of certain assets belonging to Sucellus. The acquisition of not-for-profit Everest Apothecary is valued at approximately $38 million, according to a news release. The transaction involves 14 dispensaries, a cultivation facility and a manufacturing plant. Schwazze will pay a combination of cash, a four-year seller note and company common stock. The deal, subject to approval by state regulators, is expected to close in the second quarter… Read more.
Lee Stowell worked on Wall Street selling high yield junk bonds for 25 years before deciding to return to her native Vermont with her six children in March 2020 to take over a medical cannabis operation in Brandon, called Grassroots Vermont. "I wanted to get back to Vermont," Stowell said in a recent interview. "I built my house 15 years ago, but I didn't move up here permanently until Covid hit." Stowell built her house on Goodsell Point on Lake Champlain… Read more.
Some marijuana multistate operators have weathered the perfect storm of macroeconomic headwinds, cannabis-specific challenges and legislative disappointments better than others, as evidenced by full-year and fourth-quarter results reported this spring. Analysts and cannabis industry executives said they underestimated the impact of a multitude of challenges in the fourth quarter, which included: Inflation driving up the cost of operations, many of which are business expenses that don’t qualify for tax breaks because of Section 280E of the federal tax code. Inflation driving down… Read more.
The lawsuit names several Cookies employees, including CEO Berner. The leaders of global cannabis brand Cookies have been using threats, violence and financial kickbacks to enrich themselves at the expense of company shareholders, according to a lawsuit filed by two of the company’s investors. The suit, first reported by WeedWeek, was filed by two companies, BR CO I LLC and Nedco I LLC, that together claim to own a 10% stake in California-based Cookies. It was first filed in February,… Read more.
Last year, Leafly partnered with Uber Eats to offer cannabis delivery directly to customers' homes in Canada. This collaboration marked a significant milestone as it was the first time cannabis delivery was made available on a leading third-party delivery platform. At the Benzinga Cannabis Capital Conference in Miami Beach on Tuesday, Ryan MacIsaac, a lawyer at Uber Technologies Inc (UBER), and Yoko Miyashita, the CEO of Leafly Holdings Inc (LFLY), shared some of their experiences. According to Miyashita, the primary obstacle for a company like Leafly… Read more.
Some companies to slow their hiring strategies. Legalization of recreational cannabis in Missouri led to a surge in job growth within the industry, but the trend could be slowing as labor needs are met. According to the St. Louis Post-Dispatch, the number of active licenses to work in the sector catapulted from 9,800 in October to more than 14,000 in March, after voters approved recreational marijuana use through a constitutional amendment last November. While the rapid expansion has boosted the state’s economy,… Read more.
Schwazze will now own 32 dispensaries between Everest Apothecary and R. Greenleaf. Denver-based Medicine Man Technologies Inc., which operates as Schwazze (OTCQX: SHWZ) (NEO: SHWZ), has signed definitive documents to acquire a batch of cannabis assets in New Mexico. The acquisition will allow Schwazze to manage Everest Apothecary, a non-profit corporation operating in the state. The proposed transaction includes 14 retail dispensaries, a cultivation facility, and a manufacturing plant. Upon completion of the acquisition, Schwazze will have a total of 32 dispensaries in New… Read more.
Sales on 4/20 were roughly twice the sales of a typical Thursday. Now that 4/20 is officially in the rearview mirror, the bean counters say that this year’s holiday did not disappoint. Consumers clearly don’t care whether cannabis companies are making any money or not, they were here to party. Flowhub said that 2023 was the busiest 4/20 holiday in history for dispensaries by average transaction count, up 5% from 2022 and nearly twice as busy as a typical Thursday.… Read more.
Watching the birth of the adult-use market in Washington state, Rosie recognized an opportunity. Best Public Relations: Rosie Mattio, Mattio Communications Rosie Mattio is the founder of MATTIO Communications, the largest cannabis-focused marketing and public relations agency in North America. She recently received the GMR Women’s Leadership Award for Public Relations which was announced at the Women’s Summit in New York on March 23. “I’m truly honored to receive this award,” Mattio said. “ I want to recognize the women (and men)… Read more.
A “series of cascading failures” was responsible for Dutchie’s e-commerce platform outage that impacted marijuana retailers on 4/20, the company admitted. As a make-good, Dutchie CEO Tim Barash promised to pay out retailers that use the Oregon-based cannabis tech platform “an amount equivalent to our estimate of your lost profits” during the Thursday interruptions. After reporting “elevated error rates” on Tuesday and Wednesday, Dutchie’s e-commerce platforms went down for a part of Thursday, one of the busiest sales days of the year for… Read more.
The Nasdaq stock exchange has warned another marijuana company that it could be delisted if it doesn’t comply with the rules. Agrify Corp., a Massachusetts-based cannabis cultivation and extraction solutions company, received a notice of noncompliance from Nasdaq because the company hasn’t filed its 10-K form with its full-year financial results to the U.S. Securities Exchange Commission on time. The company, which trades on the Nasdaq as AGFY, could be delisted from the exchange if it fails to regain compliance, according to a… Read more.
Produce and marijuana company Village Farms International has been warned by the Nasdaq stock exchange about its low share price. The company’s Nasdaq-listed shares (VFF) have closed below $1 since March 7. Village Farms has until Oct. 17 to become compliant with Nasdaq’s $1 minimum bid price requirement, the Delta, British Columbia-based company said in a Monday news release. If not, “the company may be eligible for an additional period of 180 calendar days to regain compliance or may be subject to delisting… Read more.
Checking Weed Ground Zero - Colorado Sales Drop to Lowest in 4 Years and Cannabis Workers Down by 33%" As the green rush swept across the United States, Colorado quickly established itself as the epicenter of the legal cannabis industry. The state's dispensaries and cultivation facilities boomed for years, bringing in millions of dollars in revenue and creating countless jobs. However, recent data reveals a sharp decline in sales and employment within the industry. With sales dropping to their lowest… Read more.
TerrAscend Corp. (CSE: TER) (OTC: TRSSF) decided to celebrate 420 by filing its preliminary proxy statement with the U.S. Securities and Exchange Commission in its next step to listing on the Toronto Stock Exchange (the TSX). While the company had hoped to time the release at 4:20pm, it managed to post the notice at 5:30pm. Shareholders will first have to approve the proposed transaction, which is expected, and the listing would come shortly thereafter. The meeting is scheduled for June 22, 2023… Read more.
Combined adult use and medical cannabis sales in Colorado were $124 million in February, a decline of 14.2% from the same month in 2022, according to state Department of Revenue data outlined by KDVR. In all, adult-use cannabis sales in Colorado have declined 12.7% year-over-year, while medical cannabis sales have fallen 23.7% year-over-year, according to state data. Cannabis sales tax collections in the state were down 19% last month compared to March 2023, according to the revenue department. The state also saw the loss… Read more.
News of widespread layoffs at cannabis companies across the United States has dominated headlines, but an analysis of employee counts at America’s largest multistate operators shows several actually grew their payrolls last year. The fact that employee payrolls were up for some marijuana MSOs at the end of 2022 but down for others underscores how several factors can play a role in determining a company’s health. Those factors include geographic footprint, taxes, operating costs and capital availability, experts said. “The present moment… Read more.
GRN Holding Corporation, Inc. (OTC Pink: GRNF) has completed the purchase of Mendocino Green Inc, which includes a cultivation license, nursery license, and distribution license from one of the oldest cannabis license holders in California. With this acquisition complete, the company said it filed a supplemental report with OTC Markets to remove the shell status symbol from the OTC Markets webpage. Removing this designation will take the company one step closer to its previously announced plans for Corporate Restructuring according to… Read more.
It’s that time of year again—the unofficial marijuana holiday 4/20. And as has become tradition, a lot of brands, celebrities and organizations are leveraging the occasion to promote cannabis-themed campaigns and products. There are some of the usual suspects—like Jack in the Box, Weedmaps and Ben and Jerry’s—as well as general mainstream brands like Red Lobster that are getting in on the cannabis culture festivities. With more states moving to legalize marijuana, and markets expanding across the country, it seems that… Read more.
Bipartisan federal legislation reintroduced this week could provide desperately needed tax relief for state-legal cannabis businesses. Rep. Earl Blumenauer’s (D-OR) Small Business Tax Equity Act would allow companies to fully deduct “normal and necessary” operating expenses including rent, most utilities, and payroll from their federal tax returns. Under current law—the much-reviled Internal Revenue Code Section 280E—legal cannabis businesses may deduct only some of the costs directly related to manufacturing and selling inventory. The bill is co-sponsored by Reps. Nancy Mace… Read more.
Americans spent more money on legal weed last year than chocolate and craft beer combined after major changes to marijuana laws, a new report has revealed. Tapped at $30billion by cannabis website MJBizDaily, the monetary measure of legal marijuana sales increased by more than $12million from the year before, when only Washington and Colorado were allowed to shill the smelly stuff. Since then, another 20 states have followed their western counterparts' example, allowing licensed retailers to sell the drug recreationally - though federal regulators remain… Read more.
Social consumption is also on the rise. The unofficial cannabis holiday of April 20 – better known as 4/20 – is tomorrow, and retailers should be prepared for a “massive” sales day, according to tech firms that have tracked sales in past years. “This is the Super Bowl for the industry,” said Socrates Rosenfeld, the CEO of California-based I Heart Jane, a tech platform that helps marijuana retailers facilitate sales. “It’s our Black Friday.” Rosenfeld said that despite headwinds in… Read more.
Rachel Edwards heads research and development for Statehouse Holdings. Best Cultivation: Rachel Edwards, Statehouse Holdings Statehouse Holdings (CSE: STHZ), a leading player in the California cannabis industry, has made great strides under the guidance of its research and development manager, Rachel Edwards. Edwards, who began her academic journey in the biology program at college, discovered her passion for horticulture and decided to switch her major. “When I toured the greenhouses with that department head, I was like, this is absolutely what… Read more.
Several factors will combine to make 2023 a year of attrition. Last year’s global cannabis market underperformed expectations, most companies will need funding to survive the coming year, and the industry outlook is “bleak.” Those are some of the broad takeaways from a new report released this week by Ernst & Young Global Limited, an international cannabis consultancy. The informal poll, titled the “EY Global Cannabis CEO Survey,” was conducted between December and January. There were roughly 50 respondents, including 28% from… Read more.
The chairman and CEO of troubled Skymint is out as the company battles through court-ordered receivership. “We can confirm that Jeff Radway is no longer with Skymint,” the company said in an emailed statement Tuesday. “As we work through this transition, our focus remains on ensuring we are providing exceptional products and unmatched service to our customers.” On April 7, Jeff Donahue, executive vice president and general counsel of Skymint, told employees in an email obtained by Crain’s that Radway… Read more.
Marijuana retailers in Rhode Island generated $8.7 million in total sales from Feb. 23 to March 23. The sales total for adult-use and medical cannabis products in the nation’s tiniest state represented a 17.4% increase month-over-month, according to the latest data from the Rhode Island Department of Business Regulation. Adult-use sales, which launched Dec. 1 with five retailers, accounted for nearly 62% of sales, or $5.4 million, during that time period. Medical marijuana sales totaled $3.4 million. The state had 13,691 registered MMJ patients… Read more.